>> Using OAuth with browserless devices is challenging, and perhaps it's
>> more realistic to provide an API that allows the device to exchange the
>> username/password for a scoped credential (Access Token). After
>> obtaining the Access Token, the well behaved device should discard the
>> password, and only store the Access Token persistently.

That's missing the point.  If the device were well-behaved, there
would be no need for OAuth -- the device could just keep the
username/password.  Granularity is good, it's not a security property;
if the device can impersonate the user, then it's pointless (since the
device can acquire whatever permissions it wants).

The main benefit of OAuth is that the credentials *don't* flow through
the Consumer, i.e., that there are no authentication gateways.  The
only way to provide a meaningful separation between the Consumer and
the User's credentials with the Service Provider is if the User only
has to provide his credentials to the SP.

If you're trying to use OAuth in a context where the only thing that
the user can interact with is your app, then you need to somehow
provide the user a protected tunnel through your site to the SP -- an
iframe, a pop-up, etc -- such that (1) your app can't see into the
tunnel, and (2) the user (really, the UA) can authenticate that it's
talking to the SP.

Said differently, the transaction between the User and the Service
Provider needs two security properties in order for OAuth to not be
vulnerable to malicious Consumers:
1. Authentication: The SP needs to know that the User is genuine
2. Confidentiality: The verifier needs to be protected from the
Consumer until the User gives it to him.
These issues are discussed at some length in this document:
<http://tools.ietf.org/html/draft-barnes-oauth-model-01>

--Richard

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